-IH2A proposes 10% HPO for existing Refinery, Ammonia Plants; 100% HPO for new plants by 2030-

-HPOs for 47 Refinery, Ammonia Plants can create 1.5 MT hydrogen demand by 2030, NGHM domestic target-

-NGHM 2030 targets, USD 80 bn hydrogen investments at risk without HPOs, Demand Side Support-

Mumbai/Delhi, May 8, 2025 – India Hydrogen Alliance (“IH2A”) has made a formal submission to the Government of India proposing Hydrogen Purchase Obligations (HPOs) and Demand Side support for Refineries and Ammonia Plants, 10% HPO for existing plants and 100% HPO for new plants by 2030, to achieve the NGHM 2030 target of 1.5 MT green hydrogen for domestic use in India. IH2A has submitted that without HPOs and adequate offtake and demand creation, NGHM 2030 targets and combined hydrogen-related investments worth USD 80 bn are at risk.

India’s installed electrolyser base is currently <40 MW producing 10,600 MTPA of green hydrogen, which accounts for <1% of NGHM 2030 target of 1.5 MMT for domestic consumption. IH2A has, in its submission to the Government of India, stated that HPOs are critical for meeting NGHM 2030 targets and protecting the public announced hydrogen-related investments in excess of USD 80 bn in India. According to IH2A, without HPOs and Demand Support, planned hydrogen plants and supply projects risk becoming stranded assets.

IH2A has proposed HPOs to replace current grey hydrogen industrial offtake with green hydrogen, as feedstock in Refinery and Ammonia sectors, across 47 existing and proposed plants in India. The IH2A proposed HPOs are divided into the following:

1.Aggregated Industrial hydrogen Offtake in 39 Existing Domestic Projects, across 17 Refineries and 22 Ammonia plants, through a 10% HPO to meet 45% NGHM target by 2030 (672,000 MT).

2.Accelerated Industrial hydrogen Offtake in 8 New Build / Expansion projects across 5 Refinery & 3 Fertilizers plants, through 100% HPOs to meet 55% NGHM target by 2030 (849,000 MT)

Amrit Singh Deo, IH2A Secretariat lead, said, “The Government should consider mandatory Hydrogen Purchase Obligations (HPOs) to induce industrial domestic hydrogen offtake in Refineries and Ammonia sectors to meet NGHM 2030 targets. Mandated HPOs can replicate the success of RPOs from the Renewable Energy sector . Without HPOs and demand support, the combined announced USD 80 bn hydrogen related investments are at risk. Refineries and Fertilizers should have a Common Hydrogen Use and Demand Roadmap to aggregate demand and procure green hydrogen volumes of at least 10% till 2030. Once HPOs are introduced, India can look at the Japan Contract-for-Difference (CfD) framework to part-fund the green hydrogen transition by Refinery and Ammonia sector by 2030, and reduce carbon emissions in these two hard-to-abate sectors.”

IH2A estimates that an additional budget allocation for a USD 2 bn CfD framework, for refineries and fertilizers, can support the transition of all existing refinery and fertilizer plants to 10% HPO offtake and all new plants to 100% HPO offtake by 2030.

Mumbai/Delhi, December 10, 2024 – India Hydrogen Alliance (IH2A) today publicly released its Low-Carbon eFuels & Heavy Duty Transport Decarbonization Report 2025-2030 that identifies Low-Carbon Coastal Shipping, running on Green Methanol or Green Ammonia, and Sustainable Aviation Fuel (SAF)-powered Aviation, to be key drivers of low-carbon eFuels in India in the 2025-2030 period. The IH2A report makes the case for India to build Low-Carbon eFuels Hubs and Low-Carbon Heavy Duty Transport Corridors along India’s East and West Coast.

The IH2A Low-Carbon eFuels report 2025-30 is based on a scenario and assumption of a Low-Carbon Coastal Shipping fleet of 22 Green Methanol powered, and 22 Green Ammonia-powered vessels; a Low-Carbon Heavy Duty Trucking Fleet of 30 Green Methanol fueled, 30 Green Ammonia fueled and 30 Green Hydrogen trucks transport and 1-3% SAF blending on 122 flights (domestic and international) by 2030.

Key Takeaways of IH2A Low-Carbon eFuels Report 2025-2030:

1. Sustainable Aviation Fuel (SAF) blending, as a drop in fuel, is easiest for decarbonizing aviation in the short term as it does not require new aircraft CAPEX and creation of re-Fueling Infrastructure.
2. Coastal shipping fleets can be key volume driver for low-carbon e-fuels offtake – coastal shipping can account for significant offtake of green methanol and green ammonia volumes for transport decarbonization.
3. Fleet & Re-Fueling Infrastructure CAPEX for Green Methanol, Green Ammonia and Liquid/Compressed Gaseous Hydrogen is significant. Incentivizing fleet owners to include low-carbon e-fuel-powered vehicles and creating low-carbon e-fuel refueling infrastructure will be important.
4. Low Carbon and Green eFuels Production and Refueling Infrastructure should be clustered in Green Fuel Hubs, in few coastal locations, to reduce offtake risk, fuel coastal shipping and trucking fleets that operate along the coasts, minimizing cost of building eFuel refueling infrastructure in short term.
5. Collaborative Cross-Border Green Fuels Partnerships, with Singapore (for Green Methanol as Maritime Fuel) and the EU (for SAF on Aviation Fleets) are important for India, to decarbonize heavy-duty transport.

Amrit Singh Deo, IH2A Secretariat lead, said, “Aviation and Coastal Shipping are two clear priorities for decarbonizing transport with low-carbon eFuels. Coastal Shipping can deliver the volumes while SAF as a drop-in fuel is the easiest to deploy in the short-term. Strategic Low-Carbon eFuel Partnerships with Singapore and Europe will help drive eFuel adoption. Transport fleet owners, in shipping and trucking, will require CAPEX support to introduce low-carbon vehicles in their heavy-duty transport fleets. Without demand-side incentives to transport fleet owners, adoption of eFuel powered vehicles will be slow. Low carbon eFuels have an important role to play in decarbonizing heavy duty transport but close coordination between policy makers, e-fuel producers and fleet owners are required.” 

The IH2A Low-Carbon eFuels Report 2025-2030 is also available here.

This industry white paper has been prepared in anticipation of the significant green hydrogen and derivatives’ project development and production, which is expected to fuel low-carbon green fuels for heavy-duty transport , specifically in long-haul trucking, shipping and aviation. This is a preliminary view, based on some assumptions on fleet offtake and industry inputs gathered by India Hydrogen Alliance (IH2A). It does not consider eFuels or green hydrogen derivatives exports as transport fuel. In summary, potential Domestic Transport eFuels Market Assessment 2030 by volume, may be estimated as follows, with the accompanying assumptions about offtake fleets and scale:
1) Green Methanol (Shipping & Trucking) – 194 mn ltrs (22 3000-TEU Vessels, 30 10-tonne Trucks)
2) Green Ammonia (Shipping & Trucking) – 263 mn ltrs (22 3000-TEU Vessels, 30 10-tonne Trucks)
3) LH2 + CGH2 Hydrogen (Trucking) – 19500 kgs (without LH2 storage)- 30 FC Trucks
4) Sustainable Aviation Fuel (SAF) – 15-45 mn ltrs. based on 1-3% blending on 74 flights (intl, dom)

To read more, click on the link below:

IH2A India Green Hydrogen Equipment and Services Market Opportunity 2030 - White Paper - Oct 2023

Proposes USD 5 Bn Hydrogen Transition and Development Fund for Large-Scale Projects and H2 Hubs, Supply Chain, Sectoral H2 Transition Plans, National Skilling and H2 Infrastructure Development

NEW DELHI/ MUMBAI, January 23 2024: The India Hydrogen Alliance (“IH2A”) has submitted a proposal to the Ministry of Finance, Government of India, for increasing budgetary support for the National Green Hydrogen Mission (NGHM) and creating a USD 5 bn National Hydrogen Transition and Development Fund, similar to the EU Green Hydrogen Fund, to support large-scale hydrogen projects and H2 hub development, H2 supply chains beyond electrolyser manufacturing, sectoral hydrogen transition plans, skilling and hydrogen infrastructure development in the country.

IH2A’s proposed National Hydrogen Transition Funding mechanism is akin to the EU Green Hydrogen Fund which supports green hydrogen projects of national importance and hydrogen hubs. IH2A has recommended five areas that the proposed National Hydrogen Transition and Development Fund should support:

1. Co-development of at least 5 large National H2 Hubs (beyond the 2 Hubs planned in the existing NGHM), together with state government and project developers (both private and state-owned); offtake-linked incentives for Anchor Industrial Offtake entities and Contracts-for-Difference (CfD) funding.
2. Provide CAPEX support for greenfield hydrogen infrastructure such as H2 pipelines and storage facilities that will lower the cost of green hydrogen supply to offtake users.
3. Support state governments in developing domestic hydrogen equipment and supply chain equipment manufacturing clusters, for Balance of Plant (BoP) Equipment (beyond Electrolysers)
4. Support sectoral hydrogen transition plan with CAPEX incentives and offtake incentives, in Steel and Chemicals, in line with the SIGHT Mode 2 guidelines for Fertilizer and Refinery sectors.
5. Build a National Hydrogen Transition Skilling programme to create more hydrogen engineering design and engineering services professionals, working with engineering colleges and research institutions

Speaking about IH2A’s submission to the Government of India for greater budgetary support, Jillian Evanko, President and CEO, Chart Industries (NYSE: GTLS) and Founding Member, IH2A, said, “We are very pleased to see the Government of India taking the first step towards demand aggregation and offtake incentives in fertilizer and refinery sectors, with the Mode 2A and 2B Guidelines under the NGHM SIGHT Scheme. The time is right to raise public funding to match the needs of a large economy that has high ambitions for accelerating the hydrogen transition. A USD 5 bn India Hydrogen Transition Fund would put India at par with the EU, from public funding perspective, which is still short of India’s real requirement as the entire value chain needs to be developed in the country. India needs more hydrogen hubs, accelerated sectoral decarbonization in steel and chemicals, hydrogen infrastructure and domestic equipment manufacturing and specialized skill development. These should be five key priorities for developing the hydrogen economy in India in 2024. We look forward to working with all stakeholders to making this a reality.”

On funding the National Hydrogen Transition and Development Fund, Amrit Singh Deo, Secretariat Lead, India Hydrogen Alliance (IH2A), said, “A USD 5 bn hydrogen transition fund can be put together by pooling multilateral funding and government energy transition sources, such as allocating a proportion from energy transition fund constituted by Ministry of Petroleum and Natural Gas, and tapping sovereign green bonds.”

Last year, in June, IH2A submitted a plan to develop five USD 5 bn Green Hydrogen Hubs to the Government of India, as economically viable projects. Subsequently, the IH2A Hydrogen Equipment Manufacturing, Exports and Services report estimated a USD 50 bn domestic manufacturing opportunity for India, over 2024-2030 period, on the conservative side, being deployed over 135 domestic hydrogen projects, producing 1 MT green hydrogen production (a fifth of the 5 MMT national target as per the National Green Hydrogen Mission). Both reports are available on the IH2A website.

Expanded global, Indian industry members to work with government on green hydrogen projects

NEW DELHI/ MUMBAI, December 12 2023 : The India H2 Alliance (“IH2A”) today announced that it has expanded its membership with seven new industry members Torrent Power, Synergen Projects, Godawari Power and Ispat, Technip Energies, HSBC Bank, Bureau Veritas and Newtrace joining the IH2A industry coalition. The 22-member strong India Hydrogen Alliance, with 14 industry members and nine partner organisations, represent key players operating across the hydrogen value chain, technical agencies and global investors, who work closely with the Government of India and state governments to help develop the hydrogen economy in India.

The expanded membership announcement follows submission of the USD 5 bn National Green Hydrogen Hub Economic Viability and Development Plan, and the USD 50 bn Hydrogen Equipment and Exports Report, submitted by the India Hydrogen Alliance (IH2A), to the Government of India. IH2A is currently working with state governments to help develop large commercial-scale green hydrogen projects, in partnership with the private sector.

Sanjeev Shah, Director, Synergen Projects said, “As part of the Skeiron and Synergen Group, we have always taken a pioneering approach to building the new energy eco-system and are keen to lead the way in green hydrogen as well, through our membership of IH2A. We look forward to collaborating with other members and partners to build the next wave of green hydrogen projects in India.”

Nisarg Shah, Vice President of Business Development at Torrent Power, said, “As a group engaged in power generation, distribution and city gas distribution, we recognize the importance of green hydrogen in decarbonizing the energy needs of hard-to-abate sectors. We look forward to working with IH2A members and the Government to ensure hydrogen commercialization is accelerated in the next 3-5 years.”

Abhishek Agrawal, Executive Director, Godawari Power and Ispat Limited, said, “We look forward to working closely with the India Hydrogen Alliance members and partner organizations to accelerate decarbonization of the Indian metals and steel sector. We are evaluating cleantech solutions and pathways to accelerate decarbonization of our operations and intend to lead by example in our industry. ”

Jillian Evanko, President and CEO, Chart Industries (NYSE: GTLS) and Founding Member, IH2A, said, “We welcome the eight new members to the India Hydrogen Alliance. This marks a significant step forward and is a mark of investor interest in building the green hydrogen economy in India. Green Hydrogen Offtake price support will be very important for building economically viable green hydrogen projects in India. We expect the Government of India will provide greater policy and incentive clarity to green hydrogen investors so that they can take project investment and domestic manufacturing decisions.”

New members Torrent Power, Synergen Projects and Godawari Power & Ispat will join Chart Industries, Reliance Industries Limited (RIL), JSW Group, Hero Future Energies and bp in the IH2A Steering Group, which is supported by the IH2A Secretariat, run by consulting firm FTI Consulting.

About India H2 Alliance (IH2A)

The India H2 Alliance is an industry coalition of global and Indian companies committed to the creation of a hydrogen value-chain and economy in India. IH2A collaborates with private sector partners, the government and the public to ensure that costs of hydrogen production are brought down, a local supply chain for hydrogen and related applications grows and India is able to achieve its net-zero carbon ambitions by developing a hydrogen economy that complements its national renewable energy and EV/battery-technology plans. More information on IH2A and its activities, is available at www.IH2A.com.  

India Hydrogen Alliance (IH2A) has published a Hydrogen Equipment Manufacturing and Services report that estimates the addressable market for Indian-manufactured hydrogen equipment to be worth USD 45-50 bn by 2030. This market assessment includes all hydrogen production plant equipment, including electrolyser and balance-of-plant equipment, that can be deployed in India, and exported from India to the Asia, Middle East and Africa region, building India as a supply chain hub for future green hydrogen projects.

To read more, click on the link below:

IH2A India Green Hydrogen Equipment and Services Market Opportunity 2030 - White Paper - Oct 2023

Industry body projects USD 36 bn regional equipment and services exports market, USD 9-13.5 bn domestic equipment market size over next seven years

Potential of a regional hydrogen supply chain, equipment manufacturing and services hub in India

Industry body India Hydrogen Alliance (IH2A) has published a Hydrogen Equipment Manufacturing and Services report that estimates the addressable market for Indian-manufactured hydrogen equipment to be worth USD 45-50 bn by 2030. This market assessment includes all hydrogen production plant equipment, including electrolyser and balance-of-plant equipment, that can be deployed in India, and exported from India to the Asia, Middle East and Africa region, building India as a supply chain hub for future green hydrogen projects.

The estimated USD 45-50 bn hydrogen equipment and services market assessment is split 34% for electrolysers stacks, 62% for Balance of Plant equipment and 4% for specialist Engineering Services. The report makes the case for India to leverage its competitive advantage on manufacturing and engineering design to create a regional supply chain hub for hydrogen plant equipment in the country. The hydrogen equipment manufacturing and services estimate by IH2A comprises of:

1. Domestic hydrogen production plant equipment market of USD 9 bn in India, on a conservative basis – based on estimated number of 135 domestic plants by 2030 deployment of 6.8 GW pa Electrolyser Capacity, producing and delivering at least 1 Mmt green hydrogen to domestic offtake for industrial use. The 135 green hydrogen projects could vary in scale, ranging from 10 MW, 20 MW, 50 MW to 100 MW projects using different electrolyser technologies across different scales and end-use configurations (across industrial use, fertilizer use-case and heavy-duty transport use-case) together with BoP Equipment (Compressors, Storage Tanks, Transformers, Rectifiers, Liquefaction Units, Air Separation Units, Dispensing Units, Power Systems, Sensors and Instrumentation, and Pipeline/ Evacuation Infrastructure). An optimistic view would add an additional 3.4 GW electrolyser capacity to add an additional USD 4.5 bn to the domestic market during the same period.
2. Regional hydrogen equipment exports potential worth at least USD 34 bn – with locally manufactured electrolysers and Balance of Plant equipment being exported to an estimated 540 projects across APAC, Middle East and Africa region.
3. Specialist engineering design, EPC and service exports worth at least USD 2 bn - based on 5% OPEX on deployed project CAPEX investments) bn in. This is expected to represent at least 162,000 direct and indirect jobs that would be created as a result of developing the hydrogen economy in India.

Speaking on the IH2A Hydrogen Equipment Manufacturing and Services Market Assessment Report, Jill Evanko, Chief Executive and President, Chart Industries (NYSE: GTLS), and founding member, IH2A, said, “India has the potential to become a regional supply hub for hydrogen production plants, playing to its competitive position in engineering design, manufacturing and services. This is a significant opportunity that will require large-scale manufacturing build out and investments, for electrolyser stack manufacturing and Balance of Plant equipment such as compressors, storage tanks, transformers, rectifiers, air separation Units, and hydrogen pipeline infrastructure. Project developers and equipment majors are waiting to hear from the government on demand aggregation and secured offtake for early projects before they commit large CAPEX investments. The estimated USD 45-50bn equipment market opportunity is achievable and could turn India into a global supply chain hub in the developing green hydrogen economy.”

Speaking on the IH2A hydrogen equipment manufacturing and services report, Amrit Singh Deo, Senior Managing Director, FTI Consulting, and IH2A Secretariat lead, said, “Hydrogen equipment represents a significant export opportunity for India. The export market for Balance of Plant equipment is larger than the market for electrolyser stacks, and India should focus on being the preferred equipment supplier to all key hydrogen projects in the region over the next decade. This is an opportunity for government, industry and investors to work together and turn India’s competitive advantage on industrial manufacturing and engineering talent to its advantage. India should move quickly before other jurisdictions to build a hydrogen supply chain hub.”

The Hydrogen Equipment Manufacturing and Service market assessment report has been proactively prepared by India Hydrogen Alliance (IH2A), with support from industry to develop the hydrogen economy in India.